TMG Partners has been in the business of developing award-winning, financially-successful, community-based real estate for 35 years. As much as we have accomplished over the last three decades, we believe it is the way we THINK about our region, the risks we manage, the critical timing of our projects and the value we create that sets us apart.

Localism

Real Estate is
a local business.

No, really.

We don’t fly in. We live here.

David CropperDirector of Development

The San Francisco Bay Area is an extremely diverse real estate marketplace with countless micro-business climates teeming with possibility. But you have to be here—and know here—to make the most of the opportunities all around us. Having been exclusively committed to the Bay Area for over three decades, we have developed a keen local intuition which gives us a unique advantage in recognizing both the opportunities and risks in this complex market.

Regionalism

We Think Mega

If we try to solve our land use problems by focusing only on the nine Bay Area counties, we will fail.

Michael CovarrubiasChairman & CEO

As the Bay Area’s economy has grown over the last three decades, so too has its challenges—particularly related to transportation, housing, affordability and climate change. To plan for growth of 4 million more people in the next third of a century, TMG is thinking bigger, beyond our nine Bay Area counties, and working on longer term strategies to create greater connectivity across our entire megaregion.

Timing

It’s got to work at low tide as well as high tide.

Some of our best deals are the ones we didn’t do.

Matt FieldChief Investment Officer

Almost anyone can make money in a positive economic climate. But it takes discipline, depth of market knowledge and experience in all major product types to know when to buy and when to sell. The most profitable deals can be the ones you decide just don’t make sense or are outbid by an “out of town” competitor. Because we are active in our markets on a daily basis, TMG Partners has managed a portfolio through 35 years of market cycles that works in all phases and has withstood the sands of time.

Vision

huh?

Once it’s obvious, it’s too late.

Cathy GreenwoldSenior Advisor

If you wait for the statistical proof to confirm real estate opportunities, you’re looking backwards. TMG Partners has cultivated an approach to studying the business landscape that reveals market opportunities before they become obvious. Our contrarian investment strategy balances optimism and caution with the intent of turning forward-looking investments into no-brainers.

Returns

Redefining IRR

Our measure for success goes beyond profit.

Lynn TolinChief Operating Officer

Most investment professionals have a clear understanding of IRR: Internal Rate of Return, a purely financial measurement of performance. At TMG we use a different definition. For us, IRR means balancing Integrity, Relationships and Results. We measure every aspect of our business through this lens to ensure our partners, communities, tenants and buyers are treated with the highest degree of respect and responsibility while we consistently deliver superior financial performance.

In a joint venture, San Francisco-based TMG Partners and Farallon Capital Management, LLC will soon start the development of a 380,000 square foot build-to-suit project for San Jose-based Samsung Information Systems America, Inc. in Mountain View located at Cypress Business Park, 625-685 Clyde Avenue. The total cost of the project is approximately $200 million, according to sources familiar with the development.

The project for the South Korean U.S. subsidiary is expected to start in approximately 30 days. Studios Architecture of San Francisco is the project architect and Milpitas-based Devcon Construction is the general contractor on the project, according to a prepared statement from TMG in September 2012. Matt Von der Ahe, a vice president in CBRE’s San Jose office, and Hyoung Chon-Yeun, senior vice president and founder and head of CBRE’s Korea Desk, also located in the firm’s San Jose office, represented the tenant.

“Our lease with [Samsung] is further proof of the continuing confidence in the Silicon Valley market,” said Michael Covarrubias, chairman and CEO of TMG Partners, in a prepared statement. “The synergies that have historically been so valuable in this region remain and are still a strong argument for companies to expand their business presence here.”

There are some existing buildings on the site. These are single-story office/industrial buildings that will need to be scraped to make room for the next project. The lease with Samsung will run for at least 10 years. The company is planning to use the new facility for its US headquarters location for its research arm of the firm.

Samsung’s R&D Center will relocate from its current facility located at 75 West Plumeria Drive in North San Jose to the 8.5-acre site and expand to two new six-story class-A office buildings with two 5-6 story parking structures with a total of 1,000 parking spaces. The new facility will be oriented around a central plaza with views overlooking the adjacent Sunnyvale golf course.

The entire project will be LEED platinum certified.

The city’s former mayor, Michael Kasperzak, also in the same prepared statement, added, “It is a testament to the increasing economic diversity of Mountain View to welcome such a prestigious global company as Samsung. We appreciate the confidence of a world-wide company identifying our city as a benefit to their growth and we look forward to having them be an active member of the corporate community.”

There are as many as three banks that will be providing construction financing for the development. The project is located adjacent to the 101 Bayshore Freeway.